Listing ID: 83646
Outstanding opportunity to own a busy beverages and desserts restaurant located in a prime retail corridor. Backed by a national franchise, this business offers exceptionally friendly service and a large menu of fresh, healthy, and authentic Chè dessert drinks, crisp boba milk teas, signature Vietnamese coffees, real fruit smoothies and exotic juices. Customers can carry out, eat/drink-in, or order through established agreements with Grubhub, Chowbus, Doordash, and Menufy. The business offers huge growth potential in a area that is constantly expanding and has great demographics for its theme (large Asian community and increasing number of young adults). Owner completed a $275,000 buildout. Some seller financing is available for the right buyer.
- Asking Price: $195,000
- Cash Flow: $220,000
- Gross Revenue: $447,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Restaurant is in beautiful condition. Excellent street visibility and abundant free parking. Long term lease.
Focus on 2 other businesses
The venture was started in 2019, making the business 3 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 totally different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is very essential that you not rely completely on a seller's word, yet rather, use the seller's response in conjunction with your total due diligence. This will repaint a more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that profit margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new customers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day revenues. Specific factors such as brand-new competitors sprouting up around the area, road building, and also personnel turnover can influence repeat consumers and adversely impact future earnings. One vital point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the better the chance to construct a returning customer base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the local average family earnings influence future earnings potential?